Free

Brightpoint fills shoes quickly…

Sometimes jobs, like shoes, just aren’t a perfect fit.

Today’s example of that maxim includes a separation payment involving a relatively large sum of money ($2.75 million) being paid by a company with a market cap of less than $614 million. The money is going to Anthony W. Boor, who – from October, 2005 until earlier this week – was the Executive Vice President, Chief Financial Officer and Treasurer of Brightpoint, Inc. (CELL), a company that distributes cellular phones and related products. (Longtime footnoted readers may remember some of our past posts about Brightpoint, such as this one from 2006, or this one from 2007.)

According to the 8-K that Brightpoint filed on May 10 (the same day the agreement was inked), it and Boor “mutually agreed to enter into a Separation Agreement terminating his employment with the Company.”

The Separation Agreement itself, attached as Exhibit 10.1 to the 8-K, states that the two sides agreed to “conclude their employment relationship on an amicable basis,” and there isn’t anything in the document that suggests otherwise.

Boor will get $490,000 on the 8th calendar day after he signed the agreement (provided he doesn’t revoke it, but why would he?), and he will get the remaining $2.26 million six months and one day later. Brightpoint also agreed to provide Boor with continued medical benefits for 18 months, pay him $42,300 to compensate him for unused vacation and personal days, and pay another $77,274 per year in SERP payments.

Boor agreed to return all company property; however, he negotiated for (and got) the right to keep the Apple MacBook Pro laptop that he used for work. Take a moment for that point to sink in: The guy is walking away with $2.75 million, yet he negotiates for a $1,500 computer. (Of course, that’s not the first time we’ve seen an executive do that, but it still boggles our minds when they do.) Boor agreed to sign a release, and he promised to keep the company’s secrets, cooperate if the company has to defend itself against a claim or lawsuit, and not compete against Brightpoint.

Stepping in to fill Boor’s shoes is Vincent Donargo, who signed his Employment Agreement the same day that Boor signed his Separation Agreement. It’s a promotion for Donargo, who has been serving as the Senior Vice President, Chief Accounting Officer and Controller for Brightpoint.

Along with his new titles of Executive Vice President, Chief Financial Officer and Treasurer and an agreement with a three-year term comes a salary that will pay him a starting salary of $417,500 per year. His initial bonus target is 50% of that amount, plus Brightpoint agreed to give him a grant of 75,000 Restricted Stock Units (RSUs). Half of the RSUs will vest on the second anniversary of the grant date; the other half will vest on the fourth anniversary of the grant date. Presumably Donargo already knows what he’s expected to do in his new job, but – apparently just to be on the safe side – the company attached a list of 11 “Duties and Responsibilities” as Exhibit A to his agreement.

Hopefully for all concerned, Donargo and his new job will be a good fit.

Image source: kamerakamote via flickr

____

Over at FootnotedPro, we’re batting .300 with the recent news that Lawson Software (LWSN) is being acquired in a $2 billion deal. Of the companies in our January 14 report on top M&A targets for 2011, two others have also announced deals: Smurfit-Stone Container (SSCC) and Pride International (PDE). FootnotedPro: Interesting. Actionable. Profitable.